Foreclosures: The Local Forecast

by Sheila Helmberger

Foreclosure numbers across the nation have jumped dramatically the past 12 months. Unfortunately, Crow Wing, Beltrami and Cass Counties are no exception and are following the nationwide trend that sees countless homeowners fighting to keep their homes.

The numbers have risen steadily in Crow Wing County and in 2007 it hit triple digits. And it's stayed there. One hundred and one foreclosures were filed in the county in 2005, 142 in 2006, and 231 in 2007. In 2008 Crow Wing County residents filed an unfortunate high of 356 mortgage foreclosures.

In Cass County 97 home foreclosures were recorded in 2008. Fifty-two were logged the first six months of the year and 45 in the latter six months. Officials in Cass County have already recorded 13foreclosures in the early months of 2009. Dave Brook works in the civil area of the Beltrami County Sheriff's Office said they too, have seen an increase. In 2008 Brook said 60 homes went into foreclosure and already in2009 Beltrami County has seen 21. As if the numbers aren't frightening enough Ludenia said only about 40-60% of cases will actually end in a foreclosure. Many more are filed that never figure into that total.

Crow Wing County recorder Kathy Ludenia spoke about the numbers, the increase, and why area residents don't have to worry about our local banks taking the brunt of all those filings. Ludenia said many cases are started towards foreclosure but may never result in a homeowner losing their home. Many times a homeowner is able to get back on their feet or find a resource, like a friend or family member, that will lend them the money they need to get caught up on their payments. There's a chance they may be able to work out a resolution with their lending institution, too.

Ludenia is hopeful and said it looks like there may be some relief for homeowners on the horizon.

"It's going to get a little better again because mortgage money is freeing up a little bit. It is looking better. We are getting a fair number of refinances from people who had mortgages at six percent. The rates are getting much lower right now and so that is bringing some activity. Any activity is good," she said, "after the past few months."

And that trickles down to more good news because as long as the market keeps moving local banks keep moving she said.

"The actual foreclosure numbers in our county" explained Ludenia, "does not affect our local banks. People are nervous about the banks but the majority of mortgages out there have already been packaged, and sold at the secondary market. If you get a mortgage, a lot of times a lender will take the mortgage, package it with others, and then resale it. They pay for the handling of it and they get their money out so the liability of the mortgage really goes to that secondary lender. So, for the most part, our local banks are really not being impacted or hurt by it. They don't like to see their customers having a bad time but it's not something that's really drawing down the local assets of the banks."